The Government's demonetisation initiative is a step toward the better, a step towards reshaping India and a step to becoming a nation free of black money. The benefits of the move will be seen by every sector in India, including the real estate industry.
Let's find out how:
Cheaper Home Loans: With demonetisation, banks saw huge deposits in a short time. With the huge amount of cash available, banks will give out home loans at lower interest rates in the coming days!
Increased Transparency: The move will cause all the builders to accept transactions in white only. This would discard the cash component involved in buying and selling properties. Therefore, the industry will be looked upon as a more transparent and trustworthy industry. Further, other regulatory acts such as RERA and GST will also aid in bringing transparency and investors' confidence back in the sector.
Greater Foreign Investments: Improved transparency and governance standards in the real estate sector will boost foreign investments in the country.
Improved infrastructure: With banks getting huge funds, the Government will have more money to boost infrastructure schemes such as the Smart City Mission, Housing For All, etc.
In the long term, the bold initiative to remove black money and bring in transparency will definitely prove to be a boon for real estate.